Real Madrid manager Carlo Ancelotti has declared his innocence and expressed confidence ahead of his tax fraud trial.
The 65-year-old Italian appeared calm as he arrived at the Madrid court this morning for the start of his widely anticipated trial. This follows his team`s advancement to the Copa del Rey final after a dramatic comeback the previous night.
Despite facing a potential five-year prison sentence if found guilty, Ancelotti responded `No` when reporters asked if he was concerned outside the Audiencia Provincial court in Madrid.
He also refuted any suggestions of seeking a last-minute plea bargain, confirming his intention to testify and plead not guilty to the charges of defrauding the Spanish Treasury of over €1 million (£835,000) in taxes.
Ancelotti was accompanied to court by his son Davide, who is also a coach at Real Madrid, and his wife Mariann Barrena.
State prosecutors announced in March of last year that they were seeking a prison term of four years and nine months for the former Everton manager on two counts of tax fraud.
The accusations stem from his first tenure as Real Madrid manager in 2014 and 2015. Prosecutors claim he failed to declare earnings from image rights to the Spanish tax authorities by using shell companies located outside of Spain.
According to the pre-trial indictment, prosecutors allege that Ancelotti only declared his income as Real Madrid manager, despite being a tax resident in Spain during those two years with a Madrid address.
Although his first stint with Real Madrid ended in May 2015, prosecutors argue that he maintained his Madrid residence until October of that year. This indicated that Spain remained “his primary center of personal and economic interests” in 2015, as well as the preceding year.
The accusation, made public last March, asserts that Ancelotti funneled his image rights income through trusts and intermediary companies “with the aim of evading tax.”
Prosecutors state that the football manager earned over €4 million (more than £3.5 million) from image rights in 2014 and 2015.
The alleged tax fraud amounts to just over €1 million.
While Spanish Treasury officials have recovered the owed funds, they are seeking fines from Ancelotti totaling three times the amount he is accused of defrauding.
In a similar case, Lionel Messi received a 21-month prison sentence for tax fraud in July 2016, which was later converted to a €252,000 (£223,000) fine.
Cristiano Ronaldo also avoided imprisonment in Spain by admitting to tax fraud in January 2019.
He was fined nearly £16.6 million and received a suspended jail sentence.
Former Liverpool player Xabi Alonso was acquitted of tax fraud in November 2019 after facing a potential two and a half year jail sentence if convicted.
Ancelotti departed Everton in June 2021 to assume his current role as head coach at Real Madrid.
Last Friday, at a press conference, he commented: “I’m not worried, although I am annoyed by the fraud accusations. However, I have complete faith in the justice system.”
“I am indeed looking forward to testifying next Wednesday.”
Real Madrid secured their place in the Copa del Rey final last night with a remarkable comeback victory against Real Sociedad.
Antonio Rudiger scored a crucial goal in extra time, securing a 5-4 aggregate win for the Spanish team.
